Piercing Line Gold Candle Pattern

Piercing Line Bullish XAUUSD Candle Patterns

A Piercing Line Gold Candlestick Pattern & Dark Cloud Cover Candle Pattern look alike but the difference is that one occurs at the top of a Gold up gold trend (Cloud Cover) and the other occurs at the bottom of a downwards gold trend (Piercing).

Upward Gold Trend Reversal - Dark Cloud Cover Candles

Downward Gold Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

Piercing line is a long black body followed by a long white body candlestick.

The white body pierces the midpoint of the prior black body.

This is a bullish reversal gold pattern that forms at the bottom of a market downwards xauusd trend. It shows that the xauusd market opens lower & closes above the midpoint of the black body.

This shows that the momentum of the down gold trend is reducing and the xauusd market trend is likely to reverse & move in an upwards direction.

This gold pattern is shown referred to as a piercing line signifying the xauusd market is piercing the bottoms showing a market floor for the xauusd price downward trading trend.

Piercing Line Candlestick

Technical Analysis Piercing Line Candle

A buy signal is confirmed once xauusd price closes above the neckline which is the opening of the candlestick on the left of the Piercing Line candle.

This is a bullish setup and xauusd price should continue moving upwards and for a trader who puts a buy gold trade should also place a stop loss order just below the lowest xauusd price level.

Dark Cloud Cover Candlestick

Opposite of piercing candle.

This candle is a long white body followed by a long black body.

Black body pierces the midpoint of the prior white body.

This is a bearish reversal gold pattern that forms at the top of an upwards xauusd trend.

It shows that the xauusd market opens higher & closes below the midpoint of the white body.

This shows that the momentum of the up gold trend is reducing and the xauusd market trend is likely to reverse & move in a downwards direction.

This gold pattern is shown known as a cloud cover signifying the cloud as a ceiling for the xauusd price upwards trend.

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Cover Candle

A sell signal is confirmed once xauusd price closes below neck-line which is the opening of the candlestick on the left of this candle.

This is a bearish setup and xauusd price should continue moving downwards and for a trader who puts a sell gold trade should also put a stop-loss order just above highest xauusd price level.